Are there any restrictions on transfer fees for a Corcoran franchise?

According to Corcoran's 2025 Franchise Disclosure Document, transfer fees are collectable only to the extent that they reflect Corcoran's reasonable estimated or actual costs in effecting a transfer. This means that Corcoran cannot charge an arbitrary or inflated transfer fee; it must be tied to the actual expenses Corcoran incurs during the transfer process. This provision aims to protect franchisees from unreasonable or excessive transfer fees.

In practical terms, this means a prospective Corcoran franchisee should ensure that any transfer fee charged is justifiable and transparent. If the fee seems disproportionately high, a franchisee has grounds to question it and request a breakdown of the costs Corcoran is using to calculate the fee. This regulation helps ensure fairness and prevents franchisors from profiting excessively from franchise transfers.

This type of restriction on transfer fees is not uncommon in franchising, as many jurisdictions have laws in place to protect franchisees from unfair practices. Franchisees should be aware of their rights and the regulations in their specific state or region to ensure compliance and fair treatment during any franchise transfer.